American Water Works - AI Stock Analysis

Analysis generated December 5, 2025

American Water Works (NYSE: AWK) is the largest publicly traded water and wastewater utility company in the United States. The company provides drinking water, wastewater, and other related services to approximately 14 million people across 46 states as well as parts of Canada. Its robust operational reach and critical services place it squarely within an essential, and typically stable, industry. Moreover, the company has a long history of dividend payments, making it an attractive option for income-focused investors.

Fundamental Analysis

For the last quarter, American Water Works reported revenue of $1.45 billion. This evidences a significant 13.71% increase compared to the preceding quarter and a 9.67% increase compared to the same quarter last year. This trend indicates sustained revenue growth both in the quarterly and yearly perspectives.

Net income also displayed strong growth, coming in at $379 million for the last quarter. This is a 31.14% rise from the previous quarter and an 8.29% increase year-over-year. Strong net income growth is a critical indicator of the company's improving profitability.

Similarly, the company’s EBITDA for the last quarter was $878 million, reflecting a 17.38% increase quarter-over-quarter and an 11.85% increase year-over-year. This improvement in EBITDA points to the company’s increasing operational efficiency and ability to generate earnings before interest, taxes, depreciation, and amortization.

The current Price-to-Earnings (P/E) ratio for American Water Works stands at 23.02. This valuation ratio is within a normal range, indicating that the stock is neither excessively overvalued nor undervalued compared to its historical norms and industry peers.

Technical Analysis

Today’s stock price is $128.93, slightly down by 0.94% from a month ago and by 0.19% from a year ago. This might be a sign of short-term market concerns. The trend appears bearish, facilitated by currently lower SMA10 values of 130.05, compared to the previous SMA10 of 130.20. Hence, there is a slight indication of a downward price movement.

The Relative Strength Index (RSI) is at 23.4, suggesting that the stock is in oversold territory. An RSI below 30 often indicates that a stock is undervalued and may be primed for a price correction upwards in the near term.

Alternative Data Analysis

The company has 99 open job positions, which have not changed over the past few months. This is a neutral sign, suggesting that the company is maintaining its workforce levels as-is without rapid expansion or contraction.

The business outlook among employees remains neutral, and such sentiment may play a role in stabilizing growth to a certain extent. More positively, the company’s website has seen an estimated 2.4 million visitors, up 7% in the last couple of months. An increase in web traffic can correlate with higher customer engagement and potentially revenue growth.

On social media, American Water Works maintains stable followings of 1,600 on Instagram and 14,000 on Twitter, without any significant growth. While social media metrics are relatively static, they complement the overall stable outlook of the company.

Additionally, AltIndex’s AI score rates American Water Works at 46, which is a hold signal, recommending neither immediate buying nor selling actions.

Conclusion and Recommendation

American Water Works demonstrates solid fundamental growth in terms of revenue, net income, and EBITDA, reaffirming its operational efficiency and robust financial health. While the technical indicators suggest a current bearish trend, the oversold RSI indicates potential for a price rebound. Meanwhile, alternative data provides a neutral to slightly positive outlook, emphasizing stability with hints of potential growth, especially in customer engagement metrics.

Based on this extensive analysis, investors may consider maintaining their current holdings in American Water Works. The company appears stable with positive long-term fundamentals despite short-term bearish trends. Therefore, a hold recommendation is appropriate for this stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.